Any ideas?? Trying to figure this out

[NorCA]

Just trying to get some help figuring this out OK So after your mortgage payment and expenses you should have a defict of $150-200 for emergency's
Do you take 31% of your income (Net) to get the modified payment then add your bills to that.. until you have the $150-200 left?
Me: Income $2800 31% is $868 PITI
Then I read somewhere your expenses should not be more than 42% of your income, that totals 73% which would leave approx. $700 left ( not really because that is net) Is this how I should work the financal income and expense form
Honestly my expenses are approx $1600 month if the payment was $868 thats $2468 would leave me $332 a month left would it be better to be honest. Includes my 2nd mortgage and husbands child support

The reason I ask is they are trying to set me up with a trial payment of $1154.00 PITI Month, still seems high
Another Question:
My husband is not on the loan, but I am using his income I am unemployed He has some bills only in his name and same for me. Do I tell them household bills or just mine? he pays child support and i am not sure if they will use that. But it is all figured into my expenses above
Do that look at the gross for anything?

2005 1st Mortgage $265,000 payment $1492.15 3/1 arm was froze for 5 additional years
2nd $65000 payment $518
Now home is worth 205,000 per the tax office
Income $2800 month
Any Ideas
Thanks

[MyHAMP]

Under HAMP, it's 31% of GROSS income of the borrower(s).

[wonderland]

I wouldn't include your husbands bills. I think as you are unemployed you really need all of his income go towards your chances for a mod. Just my opinion.

[MyHAMP]

You might also need a "rental agreement" - you are the landlord, your husband is the renter.

[NorCA]

I ment gross is $2800 before taxes

[MyHAMP]

Originally Posted by NorCA

I ment gross is $2800 before taxes

NorCA,

When dealing with a HAMP application, you needn't focus that much on expenses, DTIs and all that other stuff. It's the NPV that counts and the important words are:

1. INCOME
2. EQUITY (if any, NOT considering 2nd mortgage)
3. MORTGAGE BALANCE

We just made our 3rd trial payment and our servicer didn't even ask for a list of expenses. It's much less important than on an "in-house"-mod.

So you are about $60K underwater which looks good in regards to HAMP and you would have $868/month for PITI. BTW, how much are your taxes and insurance?

[NorCA]

I just got the taxes lowered to $2100 year insurance is $800 year those are not included in my orignal payments
Should I tell them that the 1154 payment is still to much or just start paying it and hopefully the'll catch it ( starts 12-1) This will be my 2nd trial I made 8 payments on the 1st one

[NorCA]

How do you figure NVP??

[MyHAMP]

Originally Posted by NorCA

I just got the taxes lowered to $2100 year insurance is $800 year those are not included in my orignal payments
Should I tell them that the 1154 payment is still to much or just start paying it and hopefully the'll catch it ( starts 12-1) This will be my 2nd trial I made 8 payments on the 1st one

So under HAMP, your modified P&I for the first 5 years should be about $630/month. That doesn't look too bad. You would be paying off about $210K over 40 years and would need a forbearance of $55K.

I'm not quite sure why your trial-payment is that high. I've seen several cases where members had to pay more than the 31% on their trial but were adjusted to the correct number for the permanent. This is for HAMP, right? Stupid question but I just want to make sure because you mentioned a previous 8 month trial (which wasn't HAMP, I guess).

I'd say if you you don't mind paying that amoount for the trial and if it's less than what you were paying before, give it a try.

[MyHAMP]

Originally Posted by NorCA

How do you figure NVP??

The specific test is not public. There is only something called "mod-in-a-box" where you punch in some numbers of your income and property. Quite complex.

NPV simply compares if the lender would be better if with a foreclosure rather than a mod. And now let's get back to my other post:

Equity: If you owe more than what the property is worth, the lender makes a loss when foreclosing (and vice versa). That's important.

Income: The more you make, the higher your interest-rate and interest-bearing principal amount under HAMP will be. If you would earn more, there would be no need to forbear interest-free, meaning more money for the lender...

Mortgage Balance: Influences the two prior factors.

[NorCA]

Thank You MYHAMP for helping me out

The 1st trial was HAMP and I was on umemployment but now that unemployment has run out thanks to them taking so long, I have to start a new trial, I have just recieved that paperwork from fed-ex

[MyHAMP]

Originally Posted by NorCA

Thank You MYHAMP for helping me out

The 1st trial was HAMP and I was on umemployment but now that unemployment has run out thanks to them taking so long, I have to start a new trial, I have just recieved that paperwork from fed-ex

You're welcome!

Lenders are slowely but surely figuring out how to deal with HAMP and if this reported income stays as it is, you should be fine.

[Marie T]

Originally Posted by MyHAMP

You might also need a "rental agreement" - you are the landlord, your husband is the renter.

Has someone at Chase said that you need a rental agreement? I am just curious as I am in the same boat...I am the only signer on the loan but my husband's income is paying the bills/mortgage right now. I am self-employed and have not made much so far this year!

[litehouse01]

Be prepared when doing rental agreements and the like as the IRS is involved in this whole mha/hamp delema and they may check your upcoming tax return to see if you claimed rental income etc..could open a can of worms be prepared.....not borrowing trouble but just a thought to consider...Because its considered "INCOME"

[MyHAMP]

Originally Posted by litehouse01

Be prepared when doing rental agreements and the like as the IRS is involved in this whole mha/hamp delema and they may check your upcoming tax return to see if you claimed rental income etc..could open a can of worms be prepared.....not borrowing trouble but just a thought to consider...Because its considered "INCOME"

That's true. That's the old "you can't have it both ways"-problem.
However, in this case, it shouldn't be a huge issue sincethis "income" is obviously the only income that member has. And in case of an approval, you can either deduct the mortgage payments from the taxes or you can terminate the rental agreement.

In our case, we told our lender that our grandmother who's living with us is willing to make a monthly contribution towards our mortgage. In return, they told us they need a rental agreement. They didn't even care if that agreement was already existing or if she would actually paying any rent at all - I mean she could also pay for food or utilities, right?

[MyHAMP]

Originally Posted by Marie T

Has someone at Chase said that you need a rental agreement? I am just curious as I am in the same boat...I am the only signer on the loan but my husband's income is paying the bills/mortgage right now. I am self-employed and have not made much so far this year!

No, not with Chase - it was with SPS but I don't think that matters. My mother is self-employed and the only signer as well and her income alone wouldn't be enough to survive the NPV-test.

[darkdays]

Originally Posted by Marie T

Has someone at Chase said that you need a rental agreement? I am just curious as I am in the same boat...I am the only signer on the loan but my husband's income is paying the bills/mortgage right now. I am self-employed and have not made much so far this year!

Different lender but I was told to provide a rental agreement to document my husband's household contribution and under HAMP, since it's not on my taxes for last 2 years, only 20% was considered. If you do claim it on taxes, still only 75% is considered. To include your spouses income you have to provide documentation of husband's income and they will consider 100% of spouses's income. Only took 4 mod apps for them to tell me this.

[NorCA]

Thanks you darksays,
I have provided them with his pay stubs and we file a joint return, it does show the unemployment on the tax return

[NorCA]

So today I spoke with Jackie Tomberlin She tells me that I will not get a modification because the $2800 my husband makes is not enough by it self, so they put me on the trial plan to buy me time to find a job, if I don't ,my payments will go from (prior to mod trial) $1492 to $3100 a month because of escrow fees late payment taxes and insurance paid etc. She said they ran my #'s thru a TMQ system and I was approved at the 31% but I told her 31% is $868 it doesn't make sense, I asked if there are any other options for me she said no.
She then says "You have till march to find a job if you don't then at least you had your house for the holidays" Can you believe that!!
I am just discouraged because she said get a job or we can't help you..
I have tried
When I started I was only two payments behind $3000 Somehow sense April I now am over $12,000 due, what is going on.
How is this happening
They made a bad but somewhat managable situation turn into what seems like an out of control downward spiral

Any encouraging thoughts

[MyHAMP]

I hear you, NorCA...

We couldn't find any "traditional" jobs either ($7/hr. is NOT an option) so my mother decided "I'll be my own boss now and start my own cleaning business."

She is doing everything on her own (if she has a bigger, commercial job, I'm jumping in as well). She is 61 and loves her freedom. Nobody can tell her any more what she has to do....

After a slow start (new job always involves learning by doing), she is now earning about $2,400/month on average. After expenses, she is making $2,200/month and she is NOT working 8 hrs./day, 5 days a week.

Although there are some days where she doesn't have a job, she's now earning $25/hr. on average.

She truely loves her new job, freedom and independence.